China Vanke Co. has committed to revising its bond delay proposal after shareholders rejected the initial plan, signaling renewed pressure to stabilize its debt obligations amid ongoing liquidity challenges. The company aims to present an improved framework by early January 2026.
- Vanke’s bond delay proposal failed with 58.4% of votes against it on December 14, 2025.
- The initial plan targeted RMB 12.3 billion in offshore notes and interest deferrals up to 18 months.
- Vanke reported a RMB 2.1 billion net loss in Q3 2025 and a debt-to-equity ratio of 82.3%.
- Offshore bonds worth USD 1.3 billion are set to mature in 2026 and 2027.
- The revised plan is expected by January 8, 2026, with a follow-up vote scheduled for mid-February.
- Vanke’s shares fell 7.2% and CDS spreads widened by 120 basis points after the vote.
China Vanke Co. has announced it will rework its proposed bond restructuring plan after a shareholder vote on December 14, 2025, failed to secure approval. The initial proposal, which sought to extend the maturity of approximately RMB 12.3 billion in offshore notes and defer interest payments for up to 18 months, was rejected by 58.4% of voting shares. The outcome reflects growing investor skepticism over the company’s ability to manage its debt under existing financial constraints. The failed vote comes amid continued stress in China’s property sector, where Vanke remains one of the largest developers by sales volume. The company reported a net loss of RMB 2.1 billion in the third quarter of 2025, a sharp reversal from its previous year's profit, and its debt-to-equity ratio stands at 82.3%, well above the sector average. The proposed restructuring had been seen as a critical step toward avoiding a formal default on its offshore bonds, which include two tranches totaling USD 1.3 billion maturing in 2026 and 2027. In response, Vanke’s board stated it will revise the plan to include stronger covenants, enhanced transparency on asset sales, and a more detailed timeline for capital restructuring. The company also pledged to engage directly with bondholders and rating agencies to rebuild trust. The revised proposal is expected to be submitted to shareholders by January 8, 2026, with a second vote anticipated by mid-February. Market reaction has been negative, with Vanke’s Hong Kong-listed shares dropping 7.2% on December 15, 2025, and its offshore bonds trading at 58 cents on the dollar. Credit default swaps on Vanke’s debt have widened by 120 basis points in the past week, reflecting rising default risk. The outcome may influence other distressed developers in China’s real estate sector, where over 60% of major developers are currently negotiating debt arrangements. The revised plan’s success will depend heavily on investor confidence and Vanke’s ability to demonstrate tangible steps toward financial recovery, including faster property sales and reduced leverage. Analysts caution that failure to secure approval on the second attempt could trigger a broader credit event, with ripple effects across Asia’s bond markets.